The Italian Competition Authority is focusing on the use of pricing algorithms in passenger aviation, specifically on routes connecting the Italian peninsula to Sicily and Sardinia, where particular transportation needs arise.
This initiative was motivated by the high prices observed during peak periods of passenger air transport demand since 2022, reported by both institutional and non-institutional entities.
Airlines have been employing algorithm-based systems for years to adjust flight costs over time, using data to differentiate them. These systems have undergone significant automation and complexity, mainly due to the expansion of manageable data and technological advancements. The future use of techniques like artificial intelligence and machine learning is expected to enable algorithms to self-learn and develop new pricing criteria.
The investigation will focus on any potential negative impacts on market fairness and conditions offered to consumers resulting from the use of pricing algorithms in this specific context. It will also examine how ticket prices and various components are communicated to the public.
Under the new regulations, the Authority might, following the investigation, impose behavioral or structural measures on airlines to correct any distortions of competition, or propose regulatory adjustments to enhance market functioning.
